By Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Dec. 1 (CNS Canada) – ICE Futures Canada canola contracts were weaker at midday Friday, as a rally in the Canadian dollar weighed on the market.
The loonie was up by more than a cent relative to its U.S. counterpart at midsession, as better-than-expected domestic employment data gave the currency a boost. The strength in the Canadian dollar cut into domestic crush margins and also makes canola less attractive to international buyers.
Large visible stocks of 1.446 million tonnes in the latest weekly Canadian Grain Commission report contributed to the softer tone in canola, after farmers delivered 427,600 tonnes into the commercial pipeline during the latest reporting period.
However, gains in Chicago Board of Trade soybeans and soyoil provided some underlying support.
Statistics Canada releases its final production estimates of the year on December 6, and positioning ahead of that report remained a feature.
About 9,300 canola contracts had traded as of 10:53 CST.
